Let’s find a tax preparation office for you


Information regarding browser or device support

Oh no! We may not fully support the browser or device software you are using !

To experience our site in the best way possible, please update your browser or device software, or move over to another browser.

Personal Finance and Savings

Retirement Contribution Tax Credits & Deductions

You can contribute up to $6,000 to your Individual Retirement Account (IRA) if you have earned income from a job or self-employment and you are under age 72. If you are age 50 or older, you may contribute up to $7,000.

Traditional IRA Contribution 

If your employer does not offer a retirement plan, your traditional (non-Roth) IRA contributions are fully deductible. If you do participate in an employer-sponsored plan such as a 401(k), your deduction for contributions may be reduced or phased out entirely based on your income. File IRS Form 8606, Nondeductible IRAs, if you are not deducting all of your traditional IRA contributions.

Retirement Savings Credit 

If you contribute to an IRA or an employer-provided retirement account, such as a 401(k), you may be eligible for a credit. Also, if you’re the designated beneficiary of an ABLE (Achieving a Better Life) account, you may be able to get a credit on contributions to your account. The retirement savings credit can be 50%, 20%, or 10% of your contributions, up to $2,000 ($2,000 each if married filing jointly). You must be age 18 or older to claim the credit and you cannot be a student or be claimed as a dependent on another's return. The credit reduces any tax liability you may have and is in addition to any deduction or exclusion from income for the contribution.

Roth Contributions and Conversions 

Contributions to a Roth IRA or 401(k) are not tax-deductible. While you can’t deduct contributions to a Roth account in the year you make them, the earnings and contributions are not taxable when you withdraw them. In addition, there is no age requirement to take distributions from your Roth accounts. If you convert your traditional IRA or 401(k) to a Roth IRA or Roth 401(k), the conversion amounts are generally fully taxable. 

Contribute the full amount possible to an IRA account to maximize your retirement savings.


Contribute the full amount possible to an IRA account to maximize your retirement savings.

Tax File Minute: Answers from a Tax Insider

Retirement tax planning and tax questions answered

Related articles

Everything You Need to Know About Retirement Distributions

Everything You Need to Know About Retirement Distributions

Federal law requires that you begin receiving distributions from your retirement accounts by April 1 of the year following the year in which you reach age 70½. The withdrawals must occur on a yearly basis and continue until you are deceased or until your accounts are depleted.

View MoreView more
What is an IRA contribution?

What is an IRA contribution?

Find out about different IRAs and their related contributions, along with what that means for your tax status.

View MoreView more
Tax Credits and Deductions for Seniors and Retirees

Tax Credits and Deductions for Seniors and Retirees

Aging represents a major life change; the tax laws for retirees and those above age 65 are slightly different than the laws for other taxpayers.

View MoreView more

Why Jackson Hewitt®?

We see you

Our Tax Pros will connect with you one-on-one, answer all your questions, and always go the extra mile to support you.

We got you

We have flexible hours, locations, and filing options that cater to every hardworking tax filer.

We fight for you

We won't stop until you get every dollar you deserve, guaranteed. It's what we've been doing for over 35 years.